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Financial Authorization Letter for United Arab Emirates

Financial Authorization Letter Template for United Arab Emirates

A Financial Authorization Letter is a formal document used in the United Arab Emirates to delegate specific financial powers from one party (the authorizer) to another (the authorized person). This document, governed by UAE Federal Laws including the Civil Code and Banking regulations, establishes the scope, limitations, and duration of financial authority granted. It serves as a legally binding instrument that enables the authorized person to conduct specified financial transactions on behalf of the authorizer, while incorporating necessary safeguards and compliance requirements under UAE law.

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What is a Financial Authorization Letter?

The Financial Authorization Letter is a critical document used in the United Arab Emirates when an individual or entity needs to delegate financial authority to another party. This document is essential for situations where the authorizer cannot personally handle financial transactions or wishes to delegate specific financial responsibilities. The letter must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 14 of 2018 (Central Bank Law), among other relevant regulations. It typically includes detailed information about both parties, specific powers granted, transaction limits, duration of authority, and any conditions or restrictions. The document is particularly important for business continuity, corporate governance, and efficient financial management while ensuring compliance with UAE banking and financial regulations.

What sections should be included in a Financial Authorization Letter?

1. Header Information: Date, reference number, letterhead, and recipient details including bank name and branch

2. Subject Line: Clear indication that this is a Financial Authorization Letter

3. Authorizer Details: Full legal name, Emirates ID number, and contact details of the person granting the authorization

4. Authorized Person Details: Full legal name, Emirates ID number, and contact details of the person being granted the authorization

5. Scope of Authorization: Clear and specific description of the financial powers being granted

6. Duration of Authority: Specific timeframe for which the authorization is valid

7. Transaction Limits: Clear specification of any monetary limits on transactions

8. Signature Block: Space for authorizer's signature, witness signatures, and notarization if required

What sections are optional to include in a Financial Authorization Letter?

1. Joint Authorization Requirements: Include when multiple signatures are required for certain transactions

2. Revocation Clause: Include when specific conditions for revoking the authorization need to be stated

3. Foreign Currency Authorization: Include when authorization covers transactions in multiple currencies

4. Digital Banking Access: Include when authorization extends to online banking services

5. Emergency Contact Protocol: Include when specific procedures for emergency situations need to be outlined

What schedules should be included in a Financial Authorization Letter?

1. Schedule A - Transaction Limits Table: Detailed breakdown of transaction limits by type of transaction

2. Schedule B - Authorized Accounts List: List of specific accounts covered by the authorization

3. Schedule C - Specimen Signature: Official specimen signatures of both the authorizer and authorized person

4. Appendix 1 - Required Documentation: List of identity documents and other supporting documentation attached

5. Appendix 2 - Bank's Authorization Form: Bank-specific authorization forms that need to be completed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant legal definitions















Clauses


















Relevant Industries

Banking and Financial Services

Corporate Services

Legal Services

Investment Management

Real Estate

Trading and Commerce

Manufacturing

Healthcare

Education

Hospitality

Construction

Retail

Professional Services

Government and Public Sector

Relevant Teams

Finance

Legal

Compliance

Treasury

Corporate Secretariat

Operations

Risk Management

Executive Leadership

Banking Relations

Administrative Support

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Corporate Secretary

Legal Counsel

Compliance Officer

Managing Director

Chief Executive Officer

Account Manager

Financial Manager

Operations Director

Business Owner

Company Director

Power of Attorney Holder

Bank Relationship Manager

Finance Administrator

Senior Accountant

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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